Professional Documents
Culture Documents
Strategy ............................................................................................................................................................................................. 12
Pricing ................................................................................................................................................................................................ 20
Attachments ...................................................................................................................................... 22
Measures ......................................................................................................................................................................................... 22
Newsletter ....................................................................................................................................................................................... 26
References .......................................................................................................................................... 29
Executive Summary
It is often said that the first impression does not get a second chance, in a world where
appearance matters, people tend to look for solutions to enhance their presentation level such
as make-up, clothes, accessories, and one of the most important parts, getting their hair done.
North America, Europe, Asia Pacific, Middle East & Africa, and South America are
the five regions that make up the worldwide natural hair care product market. L'Oréal Paris is
the parent company of Garner, and these two companies are the most dominant players in the
at-home hair color market and are the most important indirect competitors of Radico. In
direct competition with our client company the strongest global competitors are It's Pure
Organics, Herbatint and Saach Organics. The three largest beauty markets are currently the
USA, Japan and Brazil, the latter of which is expected to take 2nd place very soon, for this
reason and a number of other favorable factors (economic, cultural and competitive) Brazil
was the market chosen by the team for Radico to work in the future.
After segmenting the market in search of the ideal target customer for Radico's
products, a persona was created with the following characteristics: women over 35 years old,
with a reasonable income and a job where appearance is valued, belonging to a social class
equal to or higher than C2. Preferably from the USA, China, Japan, Brazil, Germany, India,
Russia, France, UK or Mexico. They are confident, social seekers and outgoing.
The purpose of this segmentation and search for the ideal customer for Radico is due
to two reasons: To whom we will direct our tastes and preferences study, and to whom we
will direct our promotion. Firstly, a study was carried out targeting this persona to study their
prenferences. 120 valid responses were obtained, and the findings were really interesting. The
5 most valued aspects when buying hair products are Quality, Price, Brand, Ingredients and
Packaging. However, it was also found that less than 1% of the sample knows Radico. And
finally, the main motivation for buying organic hair products is health consciousness.
After the in-depth study of the market, it is time to formulate the promotions that will
target the persona we described above. But why should we do promotion for this persona and
not for everyone else? Because we have marketing objectives, which will be much more
achievable if we target our communication well. These goals increasing brand awareness,
engagement, visits and sales. To meet these goals Radico is encouraged to use a Digital
funnel as communication strategy. Where people go from being unknown, to leads, to
opportunities, and to customers, and for each of these funnel stages there are promotion
channels and materials that will be differently (or the same but adapted) such as Google,
social media and Email. In these channels Radico must have a creative and powerful message
conveyed by communications with the slogan “Natural Beauty” but not only the message has
to be strong as well as the brand image has to be and therefore a new image was developed
for Radico including a new logo and packaging.
To enter Brazil Radico needs a concrete plan of action and Section 3 centres on the
easiest and cheapest Entry mode for Radico which is through exporting. It is recommended
that Radico practices Cooperative Exportation and integrate itself in the ‘Fulfilment by
Amazon‘(FBA) program, this will allow Radico to use Amazon's efficiency and effectiveness
to its advantage. Finally, with pricing, Radico can implement value-based pricing, with this, if
Radico increases the perceived value to the customer, it can automatically increase the price
of its products without affecting the number of sales. Still on pricing, Radico could include a
henna powder colour treatment free upon the first purchase thus implementing bundling
strategy. This could convert one time consumers to frequent buyers.
And this will be Radico's entry strategy in Brazil created by the team with all the care and
rigor, but above all with the heart filled with Radico's mission.
In 2019, Europe dominated the market with a 38.2 percent share. North America, Europe,
Asia Pacific, Middle East & Africa, and South America are the five regions that make up the
worldwide natural hair care product market. In 2020, North America held the largest share of
the global natural hair care product market. Due to men and women's increasing focus on
personal grooming and hair care practices, the market in North America is expected to
develop at a moderate rate over the projected period. Natural hair care products are expected
to be in high demand in the United States, Canada, and Mexico. In 2019, offline distribution
channels dominated the market, accounting for 79.1 percent of total global revenue.
Independent brand stores, department stores, multi-brand outlets, and hypermarkets are
among the first to introduce popular natural beauty items to the market and provide unique
bargains to their customers, resulting in increased sales. To capture customers' attention and
provide them with the ability to choose from a variety of brands before making a purchase,
these establishments have focused on delivering natural and chemical-free category setups.
The Indian hair colour business is valued Rs 1800 crores, and it has grown at a rate of 15 to
20 percent per year over the last decade. Powder hair colour is one of the most popular
segments, accounting for 45-50 percent of the market and expanding at a rate of 15percent. In
Germany, France, Italy, Spain, Austria, and Poland, Radico has created a network of
distributors. It has expanded its product range from 10 shades of hair colour to 24 shades and
its products are now offered in 24 of the European Union's 28 countries.
Global Competitors Analysis
1. Demographic
Summarizing the demographic criteria, we are left with women who are over 35, have a
stable financial situation, and have occupations where appearance is important.
2. Geographic
● Personality: A research by Dr. Somashekhar points out that there are 3 items
concerning personality formations about cosmetic products: "Using cosmetics reflects
my personality", "I am more accepted when I use cosmetics"; "Cosmetics reflect our
own image" (Somashekhar et al., 2012). With this in mind, it is possible to identify
some personality traits that characterize the target audience: confident, social seeker
and extrovert (not in the strict sense, but in a broad sense)
● Social Class: Social class can be described as the combination of three factors,
education, occupation and income. (Lendrevie et al., 2015, 150). As said before, for a
person to be able to afford beauty products, he or she must have a reasonable income
and an occupation where appearance is important. With this, we can place Radico's
target customers in the upper classes up to and including C2.
SWOT Analysis
• Internal
Strengths Weaknesses
· Radico products are 100% natural products · Radico in-store pickup is currently
manufactured of just 100% herbs and nothing else, unavailable.
that are beneficial for body and health without an · Radico does not offer international shipping.
adverse effect, therefore leading to a healthy society. · Brand Image not modernized enough
· Radico has received certifications from the · Quality of the website is weak compared to
world's top certifying companies, like ECO-CERT other competitors.
and USDA. · The company has a number of 56
· Radico’s location is considered better than the subscribers in their YouTube channel, and 6
competition, which is based in India and India is the videos only, YouTube videos are important to
land of “Ayurveda,” the 5,000-year-old system of attract consumers and putting more effort on it is
natural healing. needed to reach out to more people.
· The majority of herbs, spices, and commodities · Low brand awareness in some countries
grow in various areas of India.
· No animal Testing
· Team of professionals with deep know how in
organic products
· Presence in +100 countries
• External
Opportunities Threats
· Growing consumer interest in organic and vegan · Extremely strong indirect competitors that
products that do not harm the planet in terms of flora dominate hair product market shares.
and fauna · Economic recession has caused consumers to
· Large global distributors offering direct-to- spend less on non-essential products
consumer services with lower prices such as Amazon, · Pandemic decreases interest in beauty
Alibaba, etc. products once remote work increases
· Good receptiveness of consumers to advertising dramatically
of this type of organic and vegan products often seen · Frequent changes in the market, which the
as companies on a mission to change the world. cosmetic product industry moves at a breakneck
· The cost-benefit of organic and paid outreach on speed.
social networks is huge compared to other more · Distribution prices skyrocket as distribution
traditional marketing methods. companies realize how important they are to
· Social networks with very advanced algorithms getting company products to end consumers
that evaluate the interests of users and make our when physical stores were closed
advertising reach the ideal customer and therefore
increase conversion rates
· Celebrities and influencers are available to share
this type of product since their organic and vegan
positioning on social media is totally in line with that
of the brand.
To select the new market to enter, the Top 20 countries that spend the most on hair products
were selected, and then the countries that Radico already has a presence in, such as the USA,
China, Japan, etc. were removed. This left a list of 13 countries for evaluation: Bangladesh,
Brazil, Egypt, Ethiopia, Indonesia, Iran, Mexico, Pakistan, Philippines, Poland, Russia,
Thailand and Turkey. These countries were evaluated in 4 major factors: Economic, Cultural,
Competitive and Industry. To calculate the Score for each element of these factors, the
highest and the lowest values were taken to calculate the range. This range was divided into
10, which created 10 categories or valued ranges from 1 to 10 where the values of each
country in each item could settle. At the end the sum of all the Scores was calculated to give
the total Score and reveal the most attractive country.
Market Attractiveness Score board
Competitors
Indirect:
According to Nielsen, P&G Brazil, through its Wella unit is the number one hair colour
company. P&G owns roughly 21% of the market with brands like Keaston, Soft Color, and
Pro Vital. The firm introduced its first post-chemical anti-dandruff range in November. It
consists of a balanced shampoo and conditioner that nourishes the scalp, hydrates the strands
without causing damage, and fights dandruff. Wella Pro Series, a product of Procter &
Gamble, debuted in early June 2012. They were affiliated with professional salon brands for
home usage after performing effectively in the short term. TRESemmé has been a huge
success in Brazil. It is the hypermarket market leader and is widely regarded as a cost-
effective premium brand among Brazil's lower-middle-income consumers. Unilever and
L'Oréal are also heavyweight brands. Brazil has accounted for 29 percent of L'Oréal's total
growth in hair care over the last five years. Unilever and P&G, on the other hand, have 22
percent and 19 percent of the market, respectively. It is clear that the market is very
concentrated and the competition is very fierce.
Direct:
Strengths Weakneses Pricing Promotion
Vegan Ceritified and Cruelty Dye takes between 60-90 minutes Retails (most of Surya Brasil engages with
Free stamped, established to process, which is significantly the time) for customers through nearly all social
Surya credibility. New customers more time than the average at home $18.49, but media platforms (i.e.: Instagram,
Brasil receive 30% off of initial hair dye. Most at home hair dyes currently retails Twitter, YouTube, Facebook,
purchases, 12 shades with require 20-30 minutes to process on for $12.94 U.S. Pinterest, and LinkedIn), so the
unique, unnatural colors the head. D reach is significant.
PESTEL Analysis
The purpose of this model is to assess and evaluate the competitive positioning and strengths
of business organisations. The use of this model can assist Radico in determining the
attractiveness of the industry and determining its competitive stance in the market. The
analysis can also be used to make certain strategic decisions that will help it boost its
performance and maintain its long-term survival.
Consumers Tastes and Preferences
Secondary data:
● According to a survey carried out for the recently launched Brazil’s Hair color
report, the consumer research showed that 23 percent of Brazilians said they had
used hair color kits in the previous 12 months, while 18 percent said they had used
hair bleaching products. The popularity of hair colour kits implies that
convenience and ease are essential characteristics for Brazilians.
● Permanent hair colorants are also noticed to be more commonly used by older
women than by younger people. According to the study, 46 percent of women
aged 35to 54 and 42 percent of women over 55 have used permanent hair
colorants in the previous year. This number reduces to 30% among younger
female consumers aged 16-24 years, and to 34% among women aged 25-44 years.
This shows that older women (who are more likely to have grey hair) are more
drawn to longer-lasting hair colorants, which usually contain ammonia, to totally
conceal their grey hair. Younger women, on the other hand, appear to seek out
products that provide a quick change of look but it doesn't last long, allowing
them to experiment with hair colour more frequently. Kits with a range of shades,
for example, would appeal to these younger women aged 16 to 24.
Radico can give importance to the above variables, and it can help with its product
differentiation.
Team’s Research:
To study the buying behavior of hair care products, the Theory of Planned Behavior will be
used. This model argues that the intention to perform a certain behavior is predicted very
accurately by attitudes toward the behavior, subjective norms, and perceived behavioral
control. (Ajzen, 1991, 179-211) However, and following the line of thought of some
more recent studies, these three factors alone may not be enough to fully explain consumer
behavior toward organic products. First, we will have to check what precedes the consumer's
attitude towards organic products. Studies have found that health consciousness,
environmental consciousness, and appearance consciousness are important in predicting
consumer attitude toward organic personal care products. (Kim & Chung, 2011) And yet,
only studying the antecedents of attitudes towards organic products has not proven to be
sufficient, since experience and knowledge of organic products is an influential factor in
behavioral intention (Ghazali et al., 2017). With that formulated, this short investigation into
consumer behavior toward organic hair products will build on the following mode:
Our goal in this section (“Purchase and consume behavior”) is to prove or disprove these
links between elements in the organic hair care products context and use this statistical
information to support non-scientific decisions in the management and marketing section.
This will be done through a questionnaire directed at the target audience described in the
previous section that will test the following hypotheses:
○ Choice criteria
In addition to testing the hypotheses described above, the objective of this questionnaire is
also to find out which elements/characteristics of the product the target audience values most.
Studies indicate that brand, quality, packaging, price and advertising play a key role in the
evaluation of options when buying cosmetics (Anjana, 2018, 453-459)
The items or measures (link to attachments) for all the constructs were adapted from (Ghazali
et al., 2017) and are presented in the attachments. Link to survey:
https://qfreeaccountssjc1.az1.qualtrics.com/jfe/form/SV_0qTjThOIriwVtVs
● Brand Awareness
With less than 1% of the sample knowing Radico, the brand awareness problem in Brazil is
clear. The most known and used brands are Garnier, L’Óreal, Pantene and Clairol. [Link to
attachments]
The most important attributes for consumers are the following [Link to attachments]:
1. Quality
2. Price
3. Brand
4. Ingredients
5. Packaging
6. Made in
7. Advertising
8. Environmentalism
9. Test Method
● Hypothesis testing
To test the hypotheses, statistical analyses were performed in SPSS; the method used was
multiple linear regression. With this analysis the objective was to find out to what extent the
independent variables (HC;EC;SC;AC and ATT;PBC;PN;SN) predict the dependent
variables (ATT and INT)
But what qualitative conclusion do we draw from the hypothesis analysis? The most
important thing to take from the results is that health consciousness will positively influence
the attitude towards the product, this means that Radico should use the argument of how good
for health their products are for the hair and for the skin. As we have seen, attitude positively
influences the purchase intention and what influences attitude is exactly this health
consciousness.
Section 2 – Marketing
Key aspetcs:
• Communication target: 35 above women in Brazil
• Communication objectives: Increse brand awareness, engagement, visits and sales
• Comunication strategy: Digital Funnel
• Channels: Google, Social Media, Email, Cell Phone
• Message: Slogan – “Natural Beauty”
To define an integrated communication strategy there are some steps that need to be followed
(Lendrevie et al., 2015, 386):
● First we have to define the targets of the communication and the objectives of the
communication and with that formulate the strategy.
● Secondly the most appropriate channels must be chosen taking into account our target
audience and objectives.
● And lastly, the issues of the message will be addressed, where it will include the
content and the brand's image.
In section 1 of this project, we defined a very specific target audience based on well-
founded market research, this definition of the target audience is paramount in any business,
firstly for market management issues, secondly for marketing-mix issues, the entire
marketing mix will be built around this person and their tastes and preferences,
communication is no exception! Knowing the characteristics of the consumers and their tastes
and preferences will give us the path we have to follow to make a communication campaign,
effectively and efficiently. It would be very easy to target the communication to as many
people as we could, however this would be a huge expense of financial resources, something
that Radico doesn't have, so we need a strategy that, as we said, is effective and resource
efficient. With this said, Radico’s strategic target for communication should be: Women over
35 years old from Brazil, with a reasonable income and a job where appearance is
valued, belonging to a social class equal to or higher than C2. They are confident, social
seekers and outgoing.
Main aspects valued in the product Main motivations to buy the product
1. Quality
2. Price 1. Health
3. Brand
4. Ingredients
5. Packaging 2. Social Normative
6. Made in
7. Advertising
8. Environmentalism 3. Perceived Behavior Control
9. Test Method
Communication objectives
In reality the communication objectives are always in line with those that are the
marketing objectives, and the ultimate marketing objective is always to increase sales,
however, the act of communicating itself is not always directly aimed at sales. Furthermore, it
is important to note that both marketing and communication objectives should be "SMART",
specific, measurable, achievable, relevant, and time-based (Patel, 2019).
(*Less than 1% stated that he knew Radico in the questionnaire done by the team.)
Strategy
Before moving on to the more operational part of marketing, it is necessary to define the
guidelines that will guide us throughout the process, that is, to define the theoretical strategy
that will integrate all the elements and make sure that all channels, materials, messages, etc.
have a very well-defined role. Consumers go through different stages until the moment of
purchase, and the channels we use to promote our products must be adapted to all these
stages, this will give a strategic integration to the promotion we do, which will result in better
results and consequently more sales. This process of adapting the channels and promotional
content to the different stages of the buying process is called content funnel, and is the
strategy that we will propose for Radico to promote their products until the sale. To better
understand this strategy, a graphic diagram was prepared that summarizes in a general way
the phases that consumers go through as well as the best channels to be used in these different
phases.
Promotion Channels and Materials
When we talk about promotion channels these days, social networks are seen as the number
one of excellence to promote the products of a brand, and the truth is that for Radico in Brazil
is no exception, being the fifth country with more users of social networks is clear that the
most effective way to reach our target consumers are the social networks, not only because
they have lots of users but also by their very low costs of promoting the products of the
brands.
(Statista, 2021)
However, as we saw earlier in the "Strategy" section, the content has to be adapted to the
different stages consumers are in, and following this logic, the promotion channels also have
to be adapted to these stages.
When we search for a specific word on Google, it evaluates every website in the world in
fractions of a second considering a very extensive amount of factors, however, some are more
important than others, such as Domain Factors, Content Factors, Page Factors and Site
Factors. Considering that domain and content are predominant factors in SEO, it is important
that the website is written in the target country language, so we have the first practical step:
develop the website in Portuguese so that the Keywords searched in Brazil have a match in
Radico's website, and this website will be the most important channel for the whole strategy.
After having a website in Portuguese, it is time to start producing content in quantity and with
quality, but how? We will have to study what consumers search on google when the subject
is hair dye. For this we will use the free Google Trends and AnswerThePublic tools which
gives us very interesting statistics, for example when a person in Brazil searches for “Tinta de
cabelo”, which means “Hair dye” it give us: Location (cities where “Tinta de cabelo” is more
reshearshed”); Similar researches and Questions related with “Tinta de cabelo”
This is important because it gives us insights of what consumers search most and want to
know, for example, there are many searches for "How to remove hair dye from hands?" or
"How to remove hair dye from clothes?", with this, Radico could produce content in the Blog
of articles with exactly the same title, this would make people spend more time on Radico's
site and Google will understand that Radico's site is a good site when the subject is "Hair
Dye'', and this makes it place the site in the first places!
Facebook is the most used platform by Brazilians, and Instagram is the fourth followed by
YouTube in fifth. But if we looked only at numbers we would make a wrong decision, which
was to run ads on Facebook, more important than numbers is the type of content that is most
shared on each platform, and according to a survey conducted by Facebook Business, "on
Instagram, they are most interested in celebrities, fashion, travel and beauty" (Facebook
Business, 2016) and according to SproutSocial: “Industries that favor visuals like food,
fashion and hip consumer products are stronger on Instagram for a reason” (Chen, 2020).
With this, we concluded that after all, the best platform for Radico is Instagram. Normally,
ads would be enough, however as Radico is an unknown brand in Brazil, and using the trust
that consumers have in certain influencers is a very positive point.
● Instagram Ads
Message
Content and Creative Strategy
To convince consumers to buy Radico’s products we must have a creative and powerful
message conveyed by communications. The first step in creative strategy is to define the
message itself that the company wants to convey, and to formulate a good message it is
necessary to respect three predominant factors and combine them into one: the product
attribute, the benefit to the consumer, the valorizing or gratifying identification (Lendrevie et
al., 2015, 432).
With the three points formulated we will have to incorporate all three into one to create the
message we must convey in all communications from now on. With this, the message should
be that with our organic products you will have beautiful hair without the worry of long-
term damage to both your appearance and the environment.
However, this message is a guide only for the company, since it was unthinkable to present it
to the public as a slogan, since it must be short, clear and catchy to stay in the memory of the
consumers (Baltazar, 2020). It is quite difficult to construct a slogan that has the
characteristics described so far and that conveys the message defined above however, as a
game of word association we thought of two words that would describe, even if indirectly,
the message we must convey, one word for the best attribute of Radico's products and one
word for the best benefit that the products can bring to consumers:
Entry Mode
Everything that has been described so far is how we will execute our strategic operations in
Brazil, however it has not yet been described how we suggest that Radico effectively enters
the Brazilian market. To select the entry mode we could discuss whether a beauty product is
an impulse purchase product and should be in the physical retail stores that this process
facilitates, which is true for most cases. However, Radico's product has a much more
noticeable and visible physical consequence, which is to change hair color, and therefore the
purchase is already more considered on the part of consumers. Nowadays the biggest source
of information research is clearly in the digital environment, and so Radico's products should
be in that environment to maximize the possibility of purchase.
The easiest and cheapest way for a company to enter a new market is through exporting.
Within exportation we recommend that Radico practices the process that in theory is called
Cooperative Exportation. Companies that are unwilling to commit the resources to set up
their own distribution organization but still want to have some control over their foreign
operations should consider cooperative exporting. In this process, the firm enters into
agreement with another company (local or foreign) where the partner will use its distribution
network to sell the exporter's goods. Now, it was said above that in theory it was called
cooperative exporting because in reality the suggestion given by the team is to integrate
Radico in the "Fulfillment by Amazon (FBA)" program.
Fulfillment by Amazon (FBA) is a service that helps businesses grow by providing access to
Amazon's logistics network. Businesses send products to Amazon fulfillment centers and
when a customer makes a purchase, Amazon handles receiving, packing, shipping, customer
service, and returns for those orders. With this, Radico is able to use Amazon's proven
effectiveness to its advantage (Amazon, 2021).
For a company like Radico that has no human resources or real estate in Brazil this would be
the fastest, cheapest and most effective way of entry, besides being in line with the digital
strategy that has been developed by the team as well as the company's preference for online
shopping
Air shipping is excessively expensive. It requires huge funds. Having much faster delivery
speed by air, shipping costs have tripled even more following COVID 19 because of limited
flights available due to flight ban and airlines have shrunk operations. Inflation and shooting
oil prices have also contributed to increased air cargo prices.
On the other hand, if we consider shipping through land, it is very risky because of looting,
and border security. Drivers may be reluctant for long dangerous traveling. Furthermore, we
might have to switch between train and truck to cross any river, bridge, mountain or lack of
roads!
Whereas, water shipping is the best choice. Large containers can be easily shipped. Water
route for trade is clear with no hurdles compared to the land one. It is much cheaper than air
cargo. It will take around 1-2 months for each shipment, which is not bad at all as our hair
products have long expiry dates. (Clifford, 8/11/2010)
As a new entrant in Brazil market, it is difficult for us to make any assumptions about the end
user or consumers. Difficult to reach them. After shipment to Brazil, warehouse costs will
add on to expenses and reduce net income. Some stock boxes can get damaged in warehouse
or while being transported into other units in warehouse. Warehouse management will not
pay us the damage, as we will only rent space without any insurance. In order to exploit new
market and gain market share, the best choice is opting for a distributor. Local distributors
have knowledge about the local market and are ware of trends or dynamics. They understand
social, environmental, political and their local economic factors. They will help reach larger
segments having connections with retailers and stores. They can help recommend us
promotions and offer good price to retail stores through bulk buying from us that will benefit
us with high volume sales. So Amazon is an example to deal with.
Pricing
As previously mentioned, Radico Colour Me Organic products are fairly priced; as the henna
powder color treatments retail for $18.95 each, and the hair color dyes retail for $22.95 each.
Radico has implemented charm pricing on their products. This psychological pricing
strategy means that the left digit has been reduced from a round number by one cent, which
gives the impression to the consumer that it costs less. As consumers, our brains process $19
versus $18.95 and $23 versus $22.95 as different values, and responsively, we conclude that
the latter is cheaper. This leads consumers to justify their purchase, and likely act upon it.
Strategically, this was well thought out on Radico’s part.
On Radico’s website, it is recommended by the brand that the consumer first try the
hair dye before experimenting with the henna powder colour treatments. This could
inadvertently de-incentivize consumers from ever purchasing the henna powder color
treatments; especially if that consumer believes themselves to be inexperienced with at home
hair coloring. Radico could include a henna powder color treatment free upon the first
purchase of the hair dye; thus, implementing a bundling strategy only upon the initial
purchase. This not only encourages consumers to try it after using the hair dye, but doing so
would likely convert one time customers to frequent buyers. Depending upon how long the
hair dye lasts for each consumer, there could be a significant amount of time before a
customer purchases another hair dye from Radico; as Radico states that dye can last up to 8
weeks before even beginning to fade. According to Healthline, one should be treating their
hair with a conditioning treatment once per week (Weimert). By encouraging customers to try
the henna powder treatment free with the purchase of a hair dye, which is a more frequently-
use product, they will likely buy the henna powder treatment again and again. This generates
sales that Radico may not have otherwise seen by promoting the product without taking too
much of a cut to their own profit as the henna powder is only free upon the initial purchase.
This strategy could also develop a loyal base of customers, as customers would value Radico
for kindly allowing them to try a product free of charge. Another strategy Radico could
implement is value-based pricing. Somewhat self-explanatory, value-based pricing is
implemented when a producer sets the price based upon the consumer’s value of the product
(Bloomenthal). Radico has a niche in the market. By manufacturing with organic ingredients
and providing henna color treatments, which are extremely unique to the market, Radico has
earned the right to price the product based upon its value and the proprietary aspects it offers.
When pricing, most businesses should aim to have a significant profit margin. In the
cosmetic industry, a retail price is normally 2 times the absolute minimum but 5 times the
production cost; which establishes a solid profit margin (Allingham Beck Associates). We
were unable to access Radico’s production cost, but according to our market analyses and
competitor’s analyses, the product is fairly priced.
Attachments
Measures
[All the items were adapted from (Ghazali et al., 2017)]
HC2 I believe that organic hair care products enable me to live healthy.
Health Consciousness (HC)
HC3 I am of the view that the consumption of organic hair care products has a health-promoting effect.
HC4 Organic hair care products and a health-conscious lifestyle match well.
EC2 I am of the opinion that during the production of organic hair care the environment is highly valued.
Environmental Consciousness (EC)
EC3 Organic hair care is an environmentally friendly product.
Appearance consciousness (AC) AC2 My appearance will be better If I use organic hair care products.
AC3 I am of the view that the consumption of organic hair care products has an appearance-promoting effect.
SV1 I believe that organic hair care products are free of harmful chemical residues.
SV2 I believe that organic hair care products feature high product safety.
Safety Value (SV)
SV3 I believe that organic hair care products are safer than conventional hair care products.
SV4 I am of the opinion that organic hair care products are not contaminated.
PN4 My knowledge about organic hair care products is better relative to the people that I know.
SN1 My family members think it is a good idea for me to buy organic hair care products.
SN4 People whom I listen to could influence me to buy organic hair care products.
PBC1 Whether or not I buy organic hair care products is entirely up to me.
PBC2 If organic hair care products were available, nothing would prevent me from buying them.
Perceived Behavioural Control (PBC)
PBC3 I have the resources and ability to buy organic hair care products.
PBC4 I am confident that if I want organic hair care products, I can buy them.
ATT4 Foolish…Wise
ATT5 Unpleasant…Pleasant
INT2 I predict that I will buy organic hair care products in the future.
INT5 Next time I shall need hair care products, I will buy organic.
INT6 If organic hair care products are available, I will buy them.
Brand Awareness
Choice criteria
(Lower the mean, higher the importance)
Instagram Ads
[Disclaimer: All promotional materials are in English for the purpose of evaluating this work,
however all text in the content created should be in Portuguese if applied to the real context.]
Landing Page
[Disclaimer: All promotional materials are in English for the purpose of evaluating this work,
however all text in the content created should be in Portuguese if applied to the real context.]
Instagram links to landing page
[Disclaimer: All promotional materials are in English for the purpose of evaluating this work,
however all text in the content created should be in Portuguese if applied to the real context.]
Instagram Content
[Disclaimer: All promotional materials are in English for the purpose of evaluating this work,
however all text in the content created should be in Portuguese if applied to the real context.]
Newsletter
[Disclaimer: All promotional materials are in English for the purpose of evaluating this work,
however all text in the content created should be in Portuguese if applied to the real context.]
Instagram Marketing
[Disclaimer: All promotional materials are in English for the purpose of evaluating this work,
however all text in the content created should be in Portuguese if applied to the real context.]
Email Marketing
[Disclaimer: All promotional materials are in English for the purpose of evaluating this work,
however all text in the content created should be in Portuguese if applied to the real context.]
Radico’s new Image
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